Luxury brands (LVMH, Hermès, Kering)
The luxury industry in one fund: LVMH, Hermès, Kering, Richemont, Estée Lauder, Ferrari. The thesis is that the wealthy keep getting richer and keep spending on premium brands. Heavily weighted toward European houses but includes US and Asian luxury too.
Returns shown in USD (your base currency). Past performance is not a reliable guide to future results.
- Owns iconic brands with strong pricing power
- Diversified across European, US and Asian luxury
- Tends to do well in wealth bull markets
- Heavily sensitive to Chinese consumer spending
- Can drop 30%+ when luxury demand cools
- Higher fees (0.25%) than broad-market funds
About this fund
Tracks S&P Global Luxury - about 80 companies producing luxury goods or services worldwide. Heavily skewed toward European brands but includes US and Asian luxury too. Sensitive to Chinese consumer demand.
Available on Interactive Brokers
Low-cost access to Luxury brands (LVMH, Hermès, Kering) and 10,000+ funds worldwide.
Frequently asked questions
Is LUXG.L accumulating or distributing?
Amundi Global Luxury UCITS ETF USD (Acc) (LUXG.L) is an accumulating ETF, so its dividends are reinvested automatically inside the fund instead of paid out as cash. The value compounds in the share price, which keeps things simple since the dividends are reinvested for you instead of arriving as cash you would otherwise have to reinvest yourself.
What is the annual fee (TER) for LUXG.L?
LUXG.L has a total expense ratio (TER) of 0.25% per year. On a $10,000 holding that is roughly $25 a year, charged inside the fund rather than billed to you separately. A lower fee leaves more of the return compounding for you over time.
Can I buy LUXG.L on Interactive Brokers?
Yes. LUXG.L trades on LSE, GBp and is available to investors worldwide through Interactive Brokers (IBKR). IBKR is the most popular way to buy UCITS ETFs because of its low FX conversion cost (around 0.03%) and low trading commissions.
What does LUXG.L invest in?
Amundi Global Luxury UCITS ETF USD (Acc) (LUXG.L) tracks the S&P Global Luxury. The luxury industry in one fund: LVMH, Hermès, Kering, Richemont, Estée Lauder, Ferrari. You buy one fund and get the whole basket in a single trade.
Is LUXG.L a UCITS ETF, and where is it domiciled?
Yes, LUXG.L is a UCITS ETF domiciled in Luxembourg. For non-US investors, EU-domiciled UCITS ETFs are usually preferred over US-domiciled ones: US dividend withholding tax is 15% under the tax treaty (versus 30% on US-domiciled funds for many non-US investors), and the holdings sit outside US estate tax.
How risky is LUXG.L?
On the TickerCompare 1 to 5 scale, LUXG.L is rated higher risk (4/5), based on how much its price has moved historically. Higher-risk funds can fall further in a downturn, so match the choice to your time horizon and how much volatility you can stomach.